Suppose that deposit insurance were reduced to a maximum of $50,000 per account (instead of $250,000). This would address the specific market imperfection of
a. externalities.
b. imperfect information.
c. rent seeking.
d. moral hazard.
d
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The US Navy determines that the navigation system on its submarines, which use low-frequency radio waves, is reducing the population of humpback whales. The is an example of
A. marginal thinking. B. comparative advantage. C. the market mechanism. D. the Phillips curve. E. an externality.
The consumer price index is used to
a. monitor changes in the level of wholesale prices in the economy. b. monitor changes in the cost of living over time. c. monitor changes in the level of real GDP over time. d. monitor changes in the stock market.
Describe the vicious cycle of poverty. What are the consequences of this cycle?
What will be an ideal response?
Command-and-control policies generally reduce pollution more than pollution taxes do.
Answer the following statement true (T) or false (F)